U.S. banks had $141.3bn in net income last year, the second-best on record behind the $145.2bn total reported for 2006, on non-interest income and lower loss provisions, the Federal Deposit Insurance Corp. said.
Fourth-quarter net income was $34.7bn, a 37% increase from the year-earlier period, the FDIC said Tuesday in its Quarterly Banking Profile.
The total for the three-month period that ended December 31st was a decline from $37.6bn in the third quarter, the FDIC said.
Bloomberg reports that industry profits were widespread with 60% of banks reporting increases from the prior year even as interest-income margins tightened, according to the agency’s report. Lenders set aside $15.1bn billion for bad loans - a 24.6% reduction from the year earlier - and the $18.6bnn in charge-offs marked the 10th consecutive quarter of declines.
'When you look back to where we were just a few years ago, the progress made to date is meaningful', FDIC Chairman Martin Gruenberg said Tuesday in a briefing on the report. 'But troubled loans, problem banks and bank failures remain at elevated levels, while growth in lending and revenue remains sluggish'.
Hit the link below to access the complete Bloomberg article: